At the beginning of 2022, Iowa City-based Steindler Orthopedic Clinic partnered with Mercy Iowa City, building on an existing 70-year relationship.
Less than two years later, Mercy Iowa City announced bankruptcy, selling its assets to the University of Iowa for $29 million.
The takeover and asset sale has created a handful of issues for Steindler, which has filed motions in court and requested contract terminations with UI. However, the system has also had some wins as it continues to grow its presence in the state independently.
Here is a timeline of Steindler's year of ups and downs:
1. In April, Steindler received the green light to begin construction on its campus in North Liberty, Iowa, which will contain an orthopedic clinic and ASC. The building was reduced from 106,880 planned square feet to 82,894 square feet due to inflation.
2. Just three months later, Steindler broke ground on the facility.
3. In October, Steindler filed a motion in court requesting that a judge force Mercy Hospital Iowa City to move forward with a $29 million asset sale following its bankruptcy announcement, alleging that Mercy's delay of the sale is harming hospital operations and scaring away patients and providers. Steindler alleged that the sale delay was disrupting patient care, eroding confidence among staff members and costing money. The sale closed at the end of January.
4. In December, Steindler announced that it had made major progress on the new clinic and ASC, moving up its intended opening date.
5. This year, UI announced that while it will take over 1,006 of Mercy's existing contracts, it will not take on agreements with Steindler. Mercy has requested that Steindler assert "rejection damages" claims by March 1, according to the report. In September, Steindler was connected to 13 Mercy contracts.